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What we know about Lagos State Finances About BudgIT BudgIT is a civic organisation driven to make the Nigerian budget and public data more understandable and accessible across every literacy span. BudgIT’s innovation within the public circle comes with a creative use of government data by either presenting these in simple tweets, interactive formats or infographic displays. Our primary goal is to use creative technology to intersect civic engagement and institutional reform. Lead Partner : Oluseun Onigbinde Research Team: Atiku Samuel, Ayomide Faleye, Olaniyi Olaleye, Thaddeus Jolayemi, Oyebola Agunloye, Ama Bassey Henry Omokhaye Creative Development: Segun Adeniyi and Folahan Johnson Contact: [email protected] +234-803-727-6668, +234-908-333-1633 Address: 55, Moleye Street, Sabo, Yaba, Lagos, Nigeria. © 2018 Disclaimer: This document has been produced by BudgIT to provide information on budgets and public data issues. BudgIT hereby certifies that all the views expressed in this document accurately reflect our analytical views that we believe are reliable and fact- based. Whilst reasonable care has been taken in preparing this document, no responsibility or liability is accepted for errors or for any views expressed herein by BudgIT for actions taken as a result of information provided in this Report. Overview Land Mass Water Area History 2797.72 Sq Km 779.56 Sq Km Lagos State was created by virtue of the State 600,000 per annum, with a density of (Creation and Transitional Provisions) Decree approximately 4,193 persons per sq. km. In the No. 14 of 1967 on 27 May 1967, which urban areas of the Lagos metropolis, the restructured Nigeria into 12 States. Prior to average population density is over 20,000 t h i s , L a g o s M u n i c i p a l i t y h a d b e e n people per sq. km. administered by the federal government (FG), through the Federal Ministry of Lagos Affairs Current demographic trend analysis reveals as the regional authority, while the Lagos City that Lagos’ population growth rate of 8% has Council governed the City of Lagos. resulted in its harbouring 36.8% (an estimated 49.8 million) of Nigeria’s 150 million urban The metropolitan areas (previously referred to population (World Bank, 1996). as Colony Provinces) of Ikeja, Agege, Mushin, Ikorodu, Epe and Badagry were administered The implication is that whereas Nigeria’s by the then Western Region. The State population growth is approximately 4-5% and became an administrative entity on 11 April stands globally at 2%, Lagos’ population is 1968, with Lagos Island serving the dual role of growing ten times faster than that of New State and Federal Capital. York and Los Angeles (USA), with grave implications for urban sustainability1. However, in 1976, Lagos Island ceased to be the capital; Ikeja assumed that role. The seat of the federal government was subsequently Estimated Population Figures relocated to Abuja on 12 December 1991, and Lagos also ceased to be Nigeria’s political 2012 11,042,686 capital. Lagos nevertheless remains Nigeria’s 2013 11,401,767 economic, manufacturing, financial and commercial hub, also ranking among Africa’s top cities along the same yardsticks. 2014 11,772,524 POPULATION 2015 12,155,337 According to the 2006 census conducted by the National Population Commission (NPC), 2016 12,550,598 Lagos has a population of over nine million, of a national estimate of 150 million. Source: Nigerian Bureau of Statistics (NBS), Central Bank of Nigeria (CBN) The population growth has a rate of about 4 Motor Vehicles Registration Statistics Motor Cycles 2010 105,147 2015 25,958 Motor Vehicles 2010 936,604 2015 833,957 Number of Boats by Ownership & Passengers (2015) Boats Passengers 136 1,403,100 Number of Ferries by Ownership & Passengers (2015) Ferries Passengers 167 25,676,923 Source: Lagos State Government 5 Finances Lagos is a State every other in Nigeria may envy, considering the size of its tax revenue relative to its centrally-collected revenue. Compared to many of its peers, Lagos is highly industrialised, Lagos Telecommunications being the nation’s economic capital and home to Statistics as at Q4 2017 a booming port system. The State government relies on statutory allocations to undertake projects and implement programmes, as highlighted in its budget. Statutory allocations make up about 21.67% of Total revenue for the Active Voice state government, while the balance is 19,417,181 generated internally. The economic structure of Lagos state gives it a considerable advantage, in terms of internally- 13.39% generated revenue (IGR) uptake. In 2016, Lagos of total active voice accounted for approximately 37% of Total IGR lines in Nigeria collected by all States, reinforcing the optimal financial position Lagos enjoys. It is important to note at this point that more Active details on Lagos’ financial statements are notoriously kept opaque, with scant useful Internet Lines information. 13,631,562 The State does not publish its detailed budget, budget implementation reports, audited statements and other critical documents 13.81% needed for holistic, independent assessment. of total active internet lines in Nigeria The low level of transparency in Lagos’ finances is reflected in the quality of service and abysmal Source: NCC, NBS range of infrastructure in the state; the paradox of Lagos is its reality as a place where rubbish dumps grow on streets, in tandem with six-figure skyscrapers. Despite its huge revenue uptake, 1https://www.fmdqotc.com/wp-content/uploads/2017/07/LASG-Series-2-Bond-Prospectus.pdf 2https://www.cbn.gov.ng/Out/2017/SD/eCopy%20of%202016%20Statistical%20Bulletin_Real%20Sector%20 Statistics_Final.xlsx (Tab C5.2) 3Telecoms Data: Active Voice and Internet per State, Porting and Tariff Information (Q4 2017) - ppg 59 http://www.nigerianstat.gov.ng/download/729 4Telecoms Data: Active Voice and Internet per State, Porting and Tariff Information (Q4 2017) - ppg 60 6 the condition of Lagos’ road and drainage disconcerting. Furthermore, the Overhead systems are overwhelmingly sub-optimal. costs of running the office of the governor of Lagos is still some way from achieving crucial Lagos in 2017 was N6bn, a figure significantly schemes, including a light rail system, and higher than the N1.32bn allocated for lagging behind in terms of road infrastructure, Overhead costs for maintaining the office of drainage construction and the provision of fire the President of Nigeria, in the 2018 budget. stations. It is therefore a matter of legal and moral The condition of schools and hospitals, when principle for Lagos state to open up its books juxtaposed with the State’s revenue is just as to public scrutiny. http://www.nigerianstat.gov.ng/download/729 5http://www.budgetoffice.gov.ng/index.php/2017-approved-budget?task=document.viewdoc&id=647 7 Lagos 2018 Budget Fiscal Framework Fiscal Framework Lagos’ 2018 spending plans suggest she may through Oke-Ira in Eti-Osa to Epe-Lekki be borrowing heavily through the year. The Expressway; the construction of an 8km southwestern Nigerian State is planning to Regional Road to serve as an alternative route spend approximately N1.046tn, with 66.8% (or to connect Victoria Garden City (VGC) with N699.082bn) going into Capital items, while Freedom Road in Lekki Phase 1; the the balance will be spent on Recurrent items, completion of the ongoing reconstruction of including the servicing of public debts, Oshodi International Airport Road into a 10- payment of salaries and emoluments of lane road and the construction of a Bus Rapid workers and other associated Overhead costs Transit (BRT) lane from Oshodi to Abule- Egba. At N1.046tn, Lagos’ expansionist spending plan for fiscal year 2018 is up 28.65%, from According to a sectoral breakdown of the 2017 levels of N813bn. Capital expenditure budget, General Public Services are projections in 2018 stand at N699.082bn, a rise earmarked to gulp N171.623bn, representing from N436.26bn in 2017. 16.41%; Public Order and Safety comes to N46.612bn (4.46%); Economic Affairs at What and how the State will spend the N473.87bn (45.3%); Environmental N1.046tn on is locked away from public debate Protection at N54.582bn (5.22%), while and assessment. Lagos is hoping for a Housing and Community Amenities got Revenue uptake of N897bn, which is N59.904bn (5.73%). significantly higher than 2017 projections of N642bn. Disaggregated information on the The Health sector got N92.676bn (8.86%); State’s revenue projections for 2018 has again Recreation, Culture and Religion got not being made public. N12.511bn (1.2%) Education was pegged at N126.302bn (12.07%), while Social Protection In 2017, Lagos’ budget was anchored on got N8.042bn (0.77%). Internally-generated Revenue projections of N450.87bn, Federal transfers of N166.54bn Under the budget, there are provisions for the and Capital receipts of N25.44bn. completion of five new Art Theatres; establishment of a Heritage Centre at the With revenue projected at N897bn and the former Federal Presidential State House 2018 spending plan built around N1.046tn, the recently handed over to the State deficit for Lagos is pegged at N149bn, which Government; a world class museum between will most likely be closed by borrowing, and the former Presidential Lodge and the State sales of government properties. Preliminary House, Marina; construction of four new information released to the public on the 2018 stadia in Igbogbo, Epe, Badagry and Ajeromi budget states that the projects therein include Ifelodun (Ajegunle) and completion of the the construction of the Agege Pen Cinema ongoing Epe and Badagry Marina projects. On flyover; construction of alternative routes 6https://www.premiumtimesng.com/regional/ssouth-west/257126-lagos-assembly-passes-n1-046-trillion-budget-2018.html 9 Housing, there are provisions that include the completion of projects, particularly those at Gbagada, Igbogbo, Iponri, Igando, Omole Phase I, Sangotedo and Ajara-Badagry under the Rent- to-Own policy.
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